Exchange rates between british pounds-japanese yen and euros

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1. Consider the following exchange rates between British pounds, Japanese yen, and euros: £1.00 = ¥180.00 and €1.25 = £1.00. Based on these rates, if there is no arbitrage opportunity how many yen should one euro convert into?

2. Sue now has $280. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Reference no: EM131980538

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